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Union Budget 2014: Cluster shot for biotech growth

For a sector that is used to step-motherly treatment, the Modi-led government seems to be taking a cue from the western model of cluster-based development to finally give a leg up to the biotechnology sector.

TNN | Jul 11, 2014, 04.02 AM IST

For a sector that is used to step-motherly treatment, the Modi-led government seems to be taking a cue from the western model of cluster-based development to finally give a leg up to the biotechnology sector. A cluster approach ensures that academia, researchers and companies engage closely to create strong synergies for growth.

If San Francisco, San Diego and Boston in the US, Cambridge in England, and Hiedelberg in Germany are the top biotech clusters in the world, back home the government is counting on cluster-led biotech development in Faridabad and Bangalore as well as agri-biotech clusters in Mohali, Pune and Kolkata.

In his speech laced with substantial doses to stimulate investment in biotechnology, the FM spoke about bolstering agri-biotech cluster development in the nascent Mohali cluster through public and private sector collaboration while putting up new ones in Pune and Kolkata.

The budget also spelt out plans of striking global partnerships to help grow the UNESCO financed International Centre for Genetic Engineering and Biotechnology, Delhi, that was seeking Rs 50 crore of yearly assistance from the government to pursue its programs.

No surprise then that the happiest are those associated with the agri-biotech sector, which constitutes 40-50% of the overall biotech industry in the country.

"There were lot of initiatives announced for the agri sector such as establishment of mobile soil testing laboratories, agricultural research institute, National Adaptation Fund for climate change and a Price Stabilization Fund among others that will certainly benefit the agri-biotech sector. The statement about ushering in a second green revolution is positive. It will boost R&D in agri-biotech sector and open up a host of opportunities," said Association of Biotech-Led Enterprises- Agriculture Group (ABLE-AG) chairman Ram Kaundinya.

While pointing out that cluster development was the right approach to grow the biotech sector, Dr Vijay Chandru, chairman and CEO, Strand Life Sciences said that while the new direction was a step in the right direction, more tax incentives were needed on for the industry to achieve its goal of reaching $100 billion by 2025.

However, not everyone seemed impressed. "Biotech has got good verbal support at the institutional and cluster level but the devil is in the detail," said Kiran Mazumdar-Shaw, CMD Biocon.

Even Mapmygenome chief executive officer Anu Acharya felt that though the budget made all the 'right noises' the 'specifics' remained missing. "However, the announcement of Rs 10,000 crore funds for startups would also help startups in the biotech space, which are generally starved for funds."

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